May 2026 Inflation Maintained through Central and Regional Synergy

Bank Indonesia (BI) assesses that the Consumer Price Index (CPI) inflation for May 2026 remained well-maintained within the target range of 1.5% to 3.5%. This achievement is viewed as a tangible result of consistent monetary policy and close synergy in inflation control between monetary authorities and the government.

The Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, explained that this success is inseparable from the collaboration within the Central and Regional Inflation Control Teams (TPIP and TPID). Furthermore, the strengthened implementation of the National Food Security Programme has become a vital pillar in maintaining price stability at the consumer level.

“The central bank believes that inflation will remain controlled within the target range of 2.5% plus or minus 1% for the remainder of 2026 and 2027,” Ramdan stated in an official briefing in Jakarta on Tuesday.

According to data from the Central Bureau of Statistics (BPS), the CPI in May 2026 experienced a monthly inflation rate of 0.28% (month-to-month). With this development, the annual inflation rate was recorded at 3.08% (year-on-year).

Despite pressures on food prices and global energy, Bank Indonesia remains committed to monitoring price transmission risks to ensure the national inflation target stays on track until the end of the year. Amid global economic uncertainty and fluctuations in the Rupiah exchange rate, Bank Indonesia’s benchmark interest rate policy continues to serve as a crucial instrument in maintaining national economic stability.